The ECB Just Downgraded Europe

ECB president Mario Draghi just spoke at a media briefing,
outlining the ECB's stimulus plans and the central bank's view of
the European economy. Here are his full set of opening remarks.

The major points to take away are:

Significantly lower forecasts
for growth and inflation

The ECB will look at its
stimulus measures again early next year (when it seems likely
to unveil more easing).

Draghi says the ECB is
willing to do QE (buying government bonds), as well as buying
anything "except gold."

The "expectation" that the
ECB's balance sheet will rise by about €1 trillion is not quite
a target, and though a "vast majority" of the governing council
agreed with it, the decision wasn't unanimous.

The ECB thinks
GDP growth will be 0.8% this year, against 0.9% before, 1% next
year against 1.6% before, and 1.5% in 2016 against 1.9%
before. Growth was expected to be low before, but the latest
outlook is even bleaker.

Inflation is
expected to be just 0.7% in 2015, against 1.1% expected before.
Inflation will rise to just 1.3% by 2016.

Though Draghi
said the ECB would look again at
stimulus, he added that the "early"
in "early next year" did not mean January. We could have to wait
two or three months for more easing, by the sound of it.